Comcast Cable Bulk Rate Contracts - Good or Bad?

Our HOA was under a bulk rate contract for many years with Comcast Cable here in Houston TX., that contract came up for renewal in June of this year at which time we received a letter which did not state what the new bulk rate contract would consist of, but asked that we contact Comcast MDU Dept. Our management company called and spoke with Comcast and we were presented with a 10 year contract which reflects a 6% year over year increase in our rates per unit (we have 30 total units) starting with the 1st year through the 10th year -- that said, we are now paying $690.00 a month for bulk service ($23 per unit) and come year #10 we would be paying $1,165.50 per month ($38,85 per unit). If we chose not to sign the new contract then we are month to month and rates can be increased at anytime, we are told usually quarterly. As of now, mid October our rate has not changed and we have not signed the contract. I, as board president, have told the board that I felt it was not in our best interest to jump into a 10 year contract that depicts such an increase, but rather to wait it out a bit and see if perhaps another option might present itself or we in fact see an increase. When we asked Comcast for a shorter term contract we were told that we could enter into a 5 or 7 year contract but that that would be at yet a higher rate of increase year over year, so once again my take on this was "not a good deal". Bottom line is we are really forced into a corner with Comcast and unless we opt to go with another provider like AT&T or such, we will eventually need to come to an agreement and sign a contract with Comcast.

I was hoping that perhaps some other HOA's have had similar dealings with Comcast and contracts like this and that you could offer me some insight as to what the situation and outcome was for your HOA. I have been told that Comcast is negotiable, and I am usually a great negotiator, but so far we have not had any success .. but I have not given up yet! There simply has to be a better option then signing on the dotted line for a guaranteed increase each year for 10 years -- after all, there is no telling what the cable market will be like a year from now, let alone 10!

Your comments, suggestions, insight is most appreciated!

‘a 10 year contract which reflects a 6% year over year increase in our rates per unit (we have 30 total units)’

Please do NOT do that. Our By-laws allow a max 3 years for any contract. We just went thru a nightmare negotiating such contract with Comcast and let me tell you it was not easy even though we invited the Comcast rep to give a presentation to the Board and the membership and some of us understand ‘contracts’.
Their packages are confusing and negotiable and if you do not understand their offerings in any detail and/or are not experienced in the contract negotiations please let an attorney do it. Do not let the MC do it, would be my advice. There are some attorneys who actually specialize in Comcast contract negotiations for condos and HOAs. Anyway, you may want to look into it.

Bill,

How was it that the bulk contract was accepted by the homeowners originally. Here in our HOA any idea of the Association negotiating on behalf of the homeowners has met with severe resistance -- even when it would save money.

Do your CC&Rs give the board unilateral authority to impose a bulk contract?

BillK,

I don't believe bulk rate cable contracts are a good deal for your association members, primarily because it can limit competition and freedom of choice.

More than likely, if you have a bulk rate contract, a portion of each unit owner's assessment will likely include payment for some form of basic cable service. Now, suppose a unit owner is not able to receive all the programming he or she desires with the basic cable service that is provided, even with the addition of enhanced services from that cable provider. Suppose the only way a unit owner can receive the desired programming is through a satellite provider? Or, suppose the desired programming can be received by a unit owner by purchasing additional services from the cable provider, but the cost for the enhanced service is greater than the cost would be by purchasing the desired programming from a satellite or other entertainment provider? If the unit owner decides to purchase television programming from a different provider, he/she would still be required to pay an assessment for the basic cable service provided with the bulk rate contract, even though the unit owner decides not to use that service. Hardly a good deal.

Also, contracts longer than three years are not generally a good idea.

A 10-year bulk rate contract is a good deal for Comcast; not for you.

Bill,

Just wanted to know if you've made any decisions or found some options. Our complex's comcast contract is up in January, so we are going to be in the same situation. We have 35 units, though some of us have ATT uverse and don't even use comcast. I did throw out to discontinue the bulk service and let everyone get there own individual service but the fear is that some people will be stringing up satellite dishes all over. I did call comcast to see how much credit a resident would get if they wanted an upgraded package and I was surprised it was $50 - more than the per unit HOA cost for basic.

Any additional insight would be appreciated. thx!

Our Homeowners' Association has a 5-year contract which is set to expire early next year. The Board wants to renew the contract but did not try very hard to inform residents. They only provided a very minimum notice by the mail box for no more than a week or so; one would need to pay close attention to see it.

I want them to cancel the contract and have created a website with intention to inform my neighbors: http://www.pleatocancelcomcastcable.org/

Any tips I could get would be greatly appreciated.

This is an old post. It is best to create a new one. I also don't understand why it's your concern about how the HOA informed the neighbors and if it was good enough. What else were they supposed to do besides send a letter? Which cost money to do by the way. It is the members responsibility to inform themselves by being active in the HOA. If not, then they get what they get.

The topic may be old, but the problem is very current. I'm forced to pay the cable bills that I don't need or want, and if I don't do anything, the problem will remain at higher price (with annual increase). A few people (the Board of Directors) will decide for all of us 172 residents. HOA has so much power, and they can spend a lot of money without consent from residents. I have created a website and will soon send letter out to members. It costs money to do this, my personal money.

Part of my dues went to the pool and tennis courts which I never used.

Accociation living is not one from Column A, two from Column B and nothing from Column C.

Melissa,

Thanks for your input. I paid my dues, all of them. The HOA can put a lien or foreclose on my property if I don't pay the Association fees. I like my neighborhood, I like the convenience of the lawn service, I like how the neighborhood looks overall, and I even like the bulk cable service back in 1997 when I bought this house. The difference is that Comcast was the only TV service in the area, but that is no longer the case, and my issue with HOA is limited to this proposed renewal of the contract, nothing more.

I offered the help, but they are not interested. My impression is that, for whatever reason, they want to renew the contract, and the law is in their favor.

My area due to competition agreements with the cable companies limit our ability to get certain cable companies. I am not in the "comcast" zone. So it may be similar to your area. It depends on who owns the equipment who provides it. Keep in mind we have multiple other cable options. Such as AT&T, Charter, Direct TV, and satellite. It is that the cables that were dug and hooked up to the homes belong to that one cable supplier. Which could mean them digging up all their equipment if we were to change.
Ever consider that angle?

There could be some money to allow the other company to hook up. I know I would charge a transfer fee of some sort if my equipment was going to be taken over by another company. It is a business and like I stated it is owned by them. It may not be that simple as just signing a new contract. Equipment costs money and either installed or not, someone is going to ask money to use it.
We could not have high speed internet because it would cost the cable company 6 million dollars and have to hire a special technician to service it. There had to be enough customers in the area to sign up for them to install the equipment. Plus it could not work with the existing cable installed. Think they needed to install fiber optic cabling.
So I have been through this before and learned it is not always a factor of signing paperwork. New equipment may be involved which the company will somehow pass onto you the customer. Plus in our situation it take a vote of the membership to allow them to dig up and install the new cable. Could you imagine undertaking that?

Same goes in my neighborhood, Verizon Fios has already been established in the area. I'm paying for both right now. Comcast has been enjoying this bulk billing since 1993, at whatever costs they put in, the gains were tremendous. I stop asking about breaking the contract, only to let it expire without renewal. I asked the President of the Board to give notice to residents about what going on so that they can be sufficiently prepared for the transfer.

Good job! If no one does anything, nothing gets done. It only takes one person to start the ball rolling. Dont worry about the president, have a thick skin and brush it off.

Below is another ridicule from one of the board members.

"This is what I got: Your attitude is the most selfish I have seen in many years. I am absolutely appalled.You would have known the situation re Comcast when you bought in Beekman Place so should not try to change the situation now particularly as it would adversely affect all other residents. Perhaps you would be happier living in a community that does not provide a bulk cable program.
Mike

In a message dated 3/12/2013 8:07:53 P.M. Eastern Daylight Time, chailai writes:
No Sir. I am NOT ashamed of myself or my decision in doing this. I firmly believe it is the right thing to do. While this bulk tv service might be of benefit to some people, it causes financial hardship to some (myself included). It is not right to ask someone else to subsidize someone’s luxury or unnecessary item. I don’t ask other people to pay my bills, and I don’t want to pay theirs. It costs me a lot of time and money, not to mention subjecting myself to ridicule in the process, but it is necessary.

My position with regard Comcast is no secret however, out of 172 units, I only have one vote as I should. I have no power to rule or to dictate anyone or anything, and I don’t want to. If I can get most people to vote or at least to understand what’s going on, that is good enough for me. The contract is about to expire, the time to talk about it is now.

From: Mike
Let me see if I understand this.
You do not want Comcast so you want the board to terminate the cable contract with them so that you can save money by not paying for the service with your Condo dues.
Terminating the contract would mean that all residents would have to buy their own service individually which would cost them at least twice as much as they are paying now just so that you can have your own way.
Many of the residents are retirees on limited incomes so this would be hardship for them.
Your action is very selfish indeed. You should be ashamed of yourself.

Mike"